Data breach compromised info of 1M-plus who sought benefits

  • By Gene Johnson The Associated Press
  • Wednesday, February 3, 2021 1:30am
  • News

By Gene Johnson

The Associated Press

SEATTLE — A Washington agency examining how the state fell victim to massive unemployment fraud last year said that files on 1.6 million claims that it obtained for its investigation have been exposed by a data breach — meaning people who already lost work due to the pandemic might have to add identity theft to their difficulties.

The breach involved a third-party software vendor, Accellion, which the state Auditor’s Office uses to transmit files.

The auditor has been looking into how Washington’s Employment Security Department lost hundreds of millions of dollars to fraudsters, including a Nigerian crime ring, which rushed to cash in on sweetened pandemic-related benefits by filing fake unemployment claims in the names of real state residents.

“I know this is one more worry for Washingtonians who have already faced unemployment in a year scarred by both job loss and a pandemic,” Auditor Pat McCarthy said in a news release Monday.

“I am sorry to share this news and add to their burdens.”

During a news conference later in the day, she called it “ironic” that files the agency obtained from the Employment Security Department to investigate the fraud would be subject to a breach, possibly opening victims to more fraud. Those potentially affected include people who filed for unemployment benefits between Jan. 1 and Dec. 10, 2020. That includes many state workers as well as people who had fake unemployment claims submitted on their behalf.

It’s not clear how many people are affected because some would have filed multiple unemployment claims, but McCarthy said she believes it to be at least 1 million people — close to one in seven Washington residents.

The data includes names, Social Security numbers, driver’s license numbers, bank information and place of employment. The Auditor’s Office says it is working with state cybersecurity officials, law enforcement and others to try to mitigate the damage.

Also potentially affected was personal information held by the Department of Children, Youth and Families, and non-personal financial and other data from about 100 local governments and 25 other state agencies.

In a statement Monday, Palo Alto, Calif.-based Accellion called the attack “highly sophisticated” and said it targeted the company’s legacy secure file-transmitting software, a 20-year-old product called FTA. The Auditor’s Office said it had nearly completed transitioning from that product to the company’s new one at the end of the year when the breach occurred; since Dec. 31, the auditor’s office has been on the new system. Other Accellion customers were also affected, including Australia’s securities regulator and New Zealand’s central bank.

McCarthy said the state learned of the attack Jan. 12, after Accellion made a general announcement regarding a security breach, but Accellion said it notified customers Dec. 23.

It wasn’t until last week that the Auditor’s Office learned what files might have been accessed, McCarthy said.

The Auditor’s Office said it has used Accellion for the past 13 years, on a contract worth about $17,000 annually.

More in News

Maintenance workers, from left, Brian Phillips, Jeff Clark and Noah Mohmand, suspend a banner outside the Port Angeles Public Library to gather interest in the library system’s Summer Reading Program, which runs from Friday through Aug. 23. The program offers free books and prizes for avid readers at the system’s branches in Port Angeles, Sequim, Forks and Clallam Bay. (Keith Thorpe/Peninsula Daily News)
Summer reading

Maintenance workers, from left, Brian Phillips, Jeff Clark and Noah Mohmand, suspend… Continue reading

Heritage projects awarded funding

Almost $2 million for Jefferson programs

Public comment period opens for cleanup at former Rayonier Mill site

Open house scheduled next month at Field Hall

History center declines Port Angeles’ offer for property

Letter cites inability to move inventory items

Cost-sharing pact approved for western Port Angeles Harbor cleanup

Potentially liable parties each to pay one-sixth of project

Sunrise Meats issues recall for smoked salmon

Sunrise Meats, Inc. of Port Angeles is recalling some… Continue reading

Candidate for Port of Port Angeles ends campaign

Nate Adkisson has announced he is ending his campaign… Continue reading

Port Townsend senior living center has COVID-19 outbreak

Twenty residents at Port Townsend Senior Living have tested… Continue reading

Two candidates vie for Port Angeles School District director

Ballots for primary to be mailed July 16

Port Townsend City Council, Planning Commission consider land use

Participants note preferred language for comprehensive plan draft

Tickets on sale for Habitat for Humanity fundraiser

Tickets are on sale for Habitat for Humanity of Clallam… Continue reading

Fish passage project resumes on Highway 101

Work crews will resume work on a fish passage improvement… Continue reading